Litecoin ETF Could Overtake XRP in Approval, Says Analyst
Amid the race for exchange-traded funds (ETFs), Litecoin appears to be positioned to have its ETF approved before XRP, according to Bloomberg analyst James Seyffart. The information was published recently from Fortune.
Grayscale Investments, a giant in digital asset management, gave The company has taken a major step by formally filing an application with the U.S. Securities and Exchange Commission (SEC) to turn its $16,1 million XRP fund into an ETF. The move comes as several companies are pushing for new cryptocurrency ETFs, capitalizing on a more favorable sentiment in the sector under the Donald Trump administration in the U.S.
Despite the optimism of some, such as Ripple CEO Monica Long, who suggested that XRP could be the next digital asset to secure approval, expert Seyffart was still skeptical about the idea. In his view on the matter, the analyst explains that XRP is still classified by the regulator as a security, which creates a significant obstacle to the product's approval. In the same sense, the ongoing lawsuit between Ripple and the SEC adds even more uncertainty to this possibility.
While XRP faces legal and regulatory challenges, Litecoin appears to have a clearer path. Seyffart believes that Litecoin has a better chance of getting the green light before XRP, as it has never been designated as a security by regulators. “There’s less regulatory baggage with Litecoin,” he explained. Despite the concerns surrounding XRP, the expert did not rule out the possibility of an XRP ETF launching this year, although he acknowledged the need for more regulatory developments.
SEC Advances Review of Canary Litecoin ETF
In a significant development for the cryptocurrency market, the US Securities and Exchange Commission (SEC) is advancing in reviewing Canary’s proposed Litecoin exchange-traded fund (ETF), requesting public comment on the matter. This move represents a crucial step in the agency’s decision to approve or reject the ETF, and could have important implications for the future of cryptocurrency investing.
In a filing dated January 29, the SEC announced that it will accept public comments for a period of 21 days after the proposal is published in the Federal Register. This is an important step in the process of reviewing the proposal, and allows investors, experts and other interested parties to express their opinions on the issue.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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